How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.03

+0.5%

Dec 5 9:30 AM EST

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To: junnie who wrote (11651)	10/22/1998 2:20:00 PM
From: ToySoldier	Read Replies (1) of 74651

junnie, thats a HUGE answer why. I will try to give a couple. 1. As part of the compensation MSFT offers its employees, it includes stock options. If the employees see that the stock price drops through the floor, it is like getting a cut in their salary. This would discourage employee retention and new hiring. 2. The price of the stock is an indicator of company health. 3. The stockholders are the OWNERS of the company. If the stock drops then the stockholders would demand actions to be taken (sometimes drastic) that affect the operation of the company. BOD members could lose their jobs, etc. In MSFT's case I dont think thats a big issue since Gates likely has controlling interests in the company anyways. I'm know there are many more reasons.... Too many to mention. Toy

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